# Eurozone Core vs Periphery: Capital Intensity Mediation

| Variable | Core S1: Z→K/Y | Core S2: Z→CA | Core S3: Z+K/Y→CA | Peri S1: Z→K/Y | Peri S2: Z→CA | Peri S3: Z+K/Y→CA |
|:---|---:|---:|---:|---:|---:|---:|
| Z_1 | 64.4631 | -15.1907 | 21.5109 | 76.1879 | -265.8088** | -47.9168 |
| | (52.0074) | (85.4582) | (57.9335) | (101.3377) | (107.1454) | (89.4300) |
| Z_2 | -8.5386 | 1.0438 | -3.3592 | -6.4735 | 32.5536** | 2.1560 |
| | (6.5556) | (10.6108) | (7.2661) | (14.1912) | (14.9989) | (12.2077) |
| Z_3 | 0.3138 | -0.0271 | 0.1317 | 0.1269 | -1.1304* | 0.0014 |
| | (0.2346) | (0.3775) | (0.2595) | (0.5503) | (0.5816) | (0.4725) |
| fiscal_bal_gdp | 0.1829*** | -0.1262 | 0.0404 | 0.2958** | -0.0850 | 0.1318** |
| | (0.0697) | (0.0887) | (0.0716) | (0.1257) | (0.1266) | (0.0589) |
| nfa_gdp_lag | 0.6392 | -2.5457** | -1.5582* | -2.2197 | 4.1288** | 0.0151 |
| | (0.7926) | (1.0403) | (0.8065) | (1.7201) | (1.8006) | (1.2034) |
| rgdp_growth | 0.0990** | 0.1040** | 0.1808*** | -0.0633 | 0.1853*** | 0.1164*** |
| | (0.0414) | (0.0515) | (0.0419) | (0.0693) | (0.0690) | (0.0290) |
| capital_intensity | | | -0.8493*** | | | -0.8919*** |
| | | | (0.0905) | | | (0.0400) |
|:---|---:|---:|---:|---:|---:|---:|
| N | 130 | 130 | 130 | 128 | 128 | 128 |
| R² | 0.0999 | -0.2983 | 0.4758 | 0.3200 | 0.1604 | -0.1033 |
| Countries | 5 | 5 | 5 | 5 | 5 | 5 |

*Panel GLS with country and year fixed effects. Standard errors in parentheses.*
*\*p<0.1, \*\*p<0.05, \*\*\*p<0.01*